Defining Salary Bases
The salary basis establishes the duration for which a salary is quoted, for example, hourly, monthly or annually. Notice that an employee's salary basis is not necessarily the same as the pay periods of his or her payroll. For example, an employee with an hourly pay rate has the salary basis Hourly Salary, but can have an assignment to a weekly payroll.
You can associate an element with one salary basis. When you associate an element with a salary basis, you cannot create or maintain entries for the element on the Element Entries window. You must use the Salary Administration window to enter and maintain employee salaries.
You define a salary basis in the Salary Basis window.
To define a salary basis:
1. Enter a name and select a basis.
2. Select the name of the salary element and input value associated with this salary basis.
Oracle HRMS uses the grade rate to validate your salary proposals. You receive a warning if the salary you enter for an employee is not within the grade rate range defined for the employee's grade.
In doing this check, the system takes account of the hours in the employee's standard work week. It compares the hours on the employee's assignment with those entered for his or her organization.
If the employee works fewer than the standard hours per week for the organization, the system prorates the permissible minimum and maximum grade rate values before validating the salary.
4. If you selected a grade rate, select the Basis (Hourly, Monthly, Annual, or Period) for the rate. For example, if your grade rate specifies the valid monthly salary ranges for each grade, select Monthly Salary in the Grade Rate Basis field.
5. If either the Basis or the Grade Rate Basis is Hourly Salary (but not both), you must enter a value in the Annualized Hours field. This records the number of working hours in a year (and hence in a month). The system uses this figure to convert salary entries and grade rate values to the same basis when it validates a new salary entry.